What is the name of your state? Maryland
When we moved to another house 20+ years ago, my parents bought our old house in order to help us with the downpayment. Couple years after my father passed away in 1985, my mother added our names (my wife and me) on the deed. In September this year, my mother changed the deed to have her name removed, so now my wife and I own the house once more. The reason for removing her name was that she wanted to donate the house, or the proceeds, to charitable organizations, and that my wife and I could take the full tax deduction since her income is limited and could not take full advantage of the tax write-off.
My questions are:
1. What is the basis for declaring capital gain (?) on our return when we either donate the property outright or sell it and then donate the proceeds?
2. What is our holding period? If we sell the house now, would it considered short or long-term, or if this question is even relevant?
Thanks in advance for your advice
When we moved to another house 20+ years ago, my parents bought our old house in order to help us with the downpayment. Couple years after my father passed away in 1985, my mother added our names (my wife and me) on the deed. In September this year, my mother changed the deed to have her name removed, so now my wife and I own the house once more. The reason for removing her name was that she wanted to donate the house, or the proceeds, to charitable organizations, and that my wife and I could take the full tax deduction since her income is limited and could not take full advantage of the tax write-off.
My questions are:
1. What is the basis for declaring capital gain (?) on our return when we either donate the property outright or sell it and then donate the proceeds?
2. What is our holding period? If we sell the house now, would it considered short or long-term, or if this question is even relevant?
Thanks in advance for your advice